- MGC Pharma will join forces with BrasilInvest to establish a joint venture company
- This joint venture company will see MGC’s products sold and marketed throughout Brazil and Latin America
- Initial patients have already been issued prescriptions with an import permit now granted
- MGC is currently up 2.94 per cent with shares trading for 3.5 cents apiece
MGC Pharma hs will join forces with BrasilInvest Global Business and Development to establish a joint venture company.
This joint venture will consist of the dedicated retail sales and marketing of MGC Pharma products into key Brazil and Latin America markets.
Both companies have agreed to establish and register the joint venture under a 50/50 ownership structure to enable MGC to conduct business in Brazil and Latin America.
This marks MGC’s entry into the Brazilian and Latin American medicinal hemp market with a well-established and strongly credential local business partner.
Under the term sheet, the joint venture company will market and distribute MGC’s pharmaceutical products through established retail distribution channels in Brazil and other Latin America countries.
The Board of MGC believes that this agreement and joint venture structure will generate material economic benefit with the generation of new sales and revenues pipelines.
This is due to Latin America’s large population of over 650 million people and the partnership with existing and established medical distribution networks.
MGC believes that this joint venture will enable it to capture a significant share of retail sales margin in some of the key medicinal hemp growth markets in the world.
“This binding agreement with BrasilInvest represents a key milestone towards establishing MGC Pharma as a leading international producer of phytocannabinoid based medicines,” Co-Founder and Managing Director of MGC Pharma Roby Zomer said.
“The Brazil and Latin American markets for the use of cannabis-based medicines is developing rapidly and emerging as a key region in the global marketplace; this JV Co will provide MGC Pharma with a strategic position to capitalise upon this and become a key supplier into this growing market,” he added.
Initial patients have already been issued prescriptions with an import permit now granted. The first order has been submitted through the group distributor and will be dispatched within the coming weeks.
The term sheet will continue in full force until both parties enter into a definitive full form agreement to replace the term sheet or until it is terminated.
MGC is up 2.94 per cent today with shares trading for 3.5 cents apiece at 12:16 pm AEDT.